Each year over one billion magazine issues are sold through over 50,000 retail stores in the United States. The “cover price” (cost of an issue) at a typical retail store (“retailer”) is often two or three times higher than the pro rata price of an issue provided in connection with a subscription to the periodical. Despite the higher prices, consumers are willing to purchase issues from retail stores because of convenience and timeliness.
Some consumers decide to forgo the advantages of issues purchased at retail stores in favor of subscriptions to periodicals, which are more cost effective. However, many inconveniences deter purchasers of single issues at retail stores from subscribing to the periodicals. For example, if a customer purchases a subscription, the retailer is deprived of the revenue he might have gained if the customer were to purchase the issues of the periodical. Furthermore, the customer cannot pay for a subscription with cash. The consumer must either mail a check or make a telephone call to initiate a subscription and provide a credit card number.
Retailers are burdened by the need to manage issues of periodicals. Retailers receive issues from a fulfillment house. Typically, the retailer is unable to sell approximately half of the issues, and must return them at substantial cost to the retailer. It is very difficult to predict which issues will sell and the quantities thereof. If too many issues are ordered, they must be returned. If too few issues are ordered, the retailer does not realize the profit it could have realized. Consequently, it is difficult or impossible to accurately stock the correct quantities of various issues.
It would be advantageous to provide a method and apparatus for facilitating the sale of subscriptions to periodicals.